6 July 2012listing compliance notice● NeutralMajor
CHINA NORTH EAST PETROLEUM HOLDINGS LTD's exchange filed to remove a class of its securities from listing.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
11 Apr 2012listing compliance notice▼ BadMajor
On April 4, 2012 NYSE Amex began delisting proceedings against the company, citing alleged failures including documentation and disclosure of related-party transactions (including issues in the July 2010 John Lees & Associates report) and the late 2011 10-K. The company plans to appeal to the Listing Qualifications Panel, and there is no assurance of success. This escalates the long-running listing and related-party concerns from earlier filings, and puts the shares' listing at real risk.
16 Mar 2012late filing notice▼ Bad
CHINA NORTH EAST PETROLEUM HOLDINGS LTD notified the SEC that its annual report would be filed late.
13 Feb 2012substantial holder notice● Neutral
Lotusbox Investments, Ltd, Harmony Capital Managers Limited reported a CHINA NORTH EAST PETROLEUM HOLDINGS LTD shareholding of 4,511,595 shares (11.80% of votes) in a periodic institutional filing.
15 Dec 2011material agreement▲ GoodMajor
On Dec 13, 2011 the company's subsidiary Songyuan Technical agreed to buy 100% of Beijing Shixin Taide Investment Consultancy, which holds exploration and drilling rights to the Qian 122 oilfield in Jilin, from China Kinwa High Technology (Shanghai-listed) for RMB 170M cash (about US$26.7M), paid in three tranches. The company expects to pay from cash on hand and close in Q1 2012; closing depends on conditions including approval by Kinwa's shareholders. This adds a second expansion alongside Durimu, and the company says it has enough cash to develop both.
8 Dec 2011listing compliance notice▼ Bad
On Dec 5, 2011 NYSE Amex told the company it breaches the rule requiring three audit committee members, because director Edward Rule left effective Nov 21, 2011 and the committee has two. The company has until the earlier of its next annual meeting or Nov 21, 2012 to fix this (or 180 days from Nov 21, 2011 if the meeting is held within that time), and says it intends to fill the seat. This is a new listing problem, separate from the earlier late-filing issues.
28 Nov 2011agm notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
9 Nov 2011quarterly activities report● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD reported a quarterly net income of $8.3 million for the period ended 2011-09-30.
27 Oct 2011agm notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
10 Aug 2011quarterly activities report● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD reported a quarterly net income of $13.0 million for the period ended 2011-06-30.
10 Aug 2011late filing notice▼ Bad
CHINA NORTH EAST PETROLEUM HOLDINGS LTD notified the SEC that its quarterly report would be filed late.
4 May 2011substantial holder notice● Neutral
Bellini Holdings Management Ltd disclosed a new substantial CHINA NORTH EAST PETROLEUM HOLDINGS LTD shareholding (16.40% of votes).
4 May 2011director interest notice● Neutral
Bellini Holdings Management LTD. became a CHINA NORTH EAST PETROLEUM HOLDINGS LTD company insider (initial ownership filing).
26 Apr 2011asset acquisition disposition● NeutralMajor
On April 21, 2011 the company completed the purchase of Shengyuan, which holds exclusive exploration and drilling rights to the Durimu oilfield in Inner Mongolia, closing the deal announced on Jan 19, 2011. The company, through its subsidiary Yu Qiao, pays the former owners RMB 70 million cash and issues 5.8 million new shares to Bellini Holdings Management (owned by the former Shengyuan shareholders), which dilutes existing holders. Shengyuan's audited 2010 accounts show crude oil sales of $485,474 and net income of $191,657 against total assets of $11.4M, of which $10.4M is owed to a shareholder; pro forma financials are still to be filed within 71 days.
7 Mar 2011director interest notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD insider Wang Hongjun gifted 250,000 shares.
20 Jan 2011capital raising announcement● NeutralMajor
On Jan 19, 2011 the company's subsidiary Songyuan Technical agreed to buy 100% of Sunite Right Banner Shengyuan Oil and Gas Technology Development Co., which holds exploration and drilling rights to the Durimu oilfield in Inner Mongolia. The price is about $43.4M: RMB 70M cash (about US$10.6M) plus 5,800,000 new company shares issued to Bellini Holdings Management Ltd. (the sellers' entity) under Regulation S. Closing needs government approvals and is targeted for end of Q1 2011. This is the company's first expansion beyond its Jilin oilfields; the shares would dilute current holders, and management says cash would fall about 40-50% over 12-18 months from roughly $60M expected at end of 2010 (the company's projection). The filing does not state whether the delayed filings were completed.
3 Jan 2011director interest notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD Acting Chief Executive Officer Jing Fu Li gifted 20,000 shares.
3 Jan 2011director interest notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD director Wang Hongjun gifted 250,000 shares.
19 Nov 2010quarterly activities report● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD reported a quarterly net income of $6.9 million for the period ended 2010-09-30.
15 Nov 2010late filing notice▼ Bad
CHINA NORTH EAST PETROLEUM HOLDINGS LTD notified the SEC that its quarterly report would be filed late.
6 Oct 2010director interest notice● Neutral
Shaohui Chen became a CHINA NORTH EAST PETROLEUM HOLDINGS LTD Chief Financial Officer and company insider (initial ownership filing).
27 Aug 2010listing compliance notice▼ BadMajor
On Aug 26, 2010 NYSE Amex granted the company's request for more time, to Aug 31, 2010, to regain compliance (the July 14 deadline was missed; the company asked for the extension on July 13). The company expects to file the 10-Q/As for the first three quarters of 2008 and 2009, the 10-K/A for 2008 and the 2009 10-K by Aug 31, and to announce preliminary Q1 and Q2 2010 results. A second missed filing (Q1 2010 10-Q, per AMEX notice of May 25) is also cited. The delisting risk and the restatement remain unresolved.
23 Aug 2010director interest notice● Neutral
CHINA NORTH EAST PETROLEUM HOLDINGS LTD director Yau-sing Tang received a stock option grant for 20,000 shares.
19 Aug 2010director interest notice● Neutral
Yau-sing Tang became a CHINA NORTH EAST PETROLEUM HOLDINGS LTD director and company insider (initial ownership filing).
17 Aug 2010late filing notice▼ Bad
CHINA NORTH EAST PETROLEUM HOLDINGS LTD notified the SEC that its quarterly report would be filed late.
18 June 2010listing compliance notice▼ BadMajor
On June 15, 2010 NYSE Amex accepted the company's compliance plan and gave it until July 14, 2010 to file the overdue 2009 10-K and Q1 2010 10-Q; failure to progress could lead to delisting. The June 15 target the company gave in April for filing the restated reports has passed without filings. Jingfu Li is now signing as Acting Chief Executive Officer (the filing does not say why Wang Hongjun is no longer in that role).
9 June 2010director interest notice● Neutral
Andrew Ho Wan Kan became a CHINA NORTH EAST PETROLEUM HOLDINGS LTD Chief Financial Officer and company insider (initial ownership filing).
18 May 2010late filing notice▼ Bad
CHINA NORTH EAST PETROLEUM HOLDINGS LTD notified the SEC that its quarterly report would be filed late.
20 Apr 2010financial restatement▼ BadMajor
A second amendment to the February restatement notice revises the numbers again. Full-year 2008 net income is now shown as $10,520,425 (down from $19,582,038 as first reported, and different from the March 8 figure of $22.1M, which had shown an increase). Q1 2009 becomes a loss of $10,353,424 and Q2 2009 a loss of $7,300,301. Net carrying value of oil and gas properties falls from $70,193,852 to $54,326,410 at Dec 31, 2008 and from $67,671,268 to $37,500,883 at March 31, 2009, because the company found its reserve engineer used an incorrectly low future operating cost factor. Warrant values were also recalculated using the full contract term. The company will disclose a material weakness in internal controls; amended reports are still pending.
16 Apr 2010listing compliance notice▼ BadMajor
On April 15, 2010 NYSE Amex told the company it breached listing rules by not filing its 2009 annual report on time; it must submit a compliance plan by April 29 and regain compliance by July 14, 2010, or the stock could be removed from the exchange. The company says it will file the 10-K soon and, in an attached press release, expects the restated 2008/2009 reports and the 2009 10-K by June 15, 2010, after an Audit Committee review of newly found internal-control deficiencies (business development expenditures and accounts payable accounting). Preliminary unaudited 2009 figures: revenue $64.7M (up 10%), production 908,126 barrels, 289 producing wells, and a net loss of $22.1M driven by $49.5M of non-cash charges. This extends the restatement saga and adds a delisting risk.